Sony Computer Entertainment America Expands the Market With Aggressive New Pricing Structure

Consumer Demand Expected to Explode as PlayStation 2 to Retail for $199; PS one Priced at $49

PRNewswire
FOSTER CITY, Calif.
May 14, 2002

Pursuing its long-term vision of making computer entertainment accessible to mass-market audiences, Sony Computer Entertainment America Inc. announced that effective immediately, its leading PlayStation®2 computer entertainment system will be available to consumers for $199, making it only two thirds of its original $299 suggested retail price (SRP). As the company recently achieved cumulative worldwide shipments of 30 million units and with a greatly enhanced value proposition, it is well positioned to drive consumer interest in PlayStation 2 to unforeseen levels.

(Photo: http://www.newscom.com/cgi-bin/prnh/20000510/SFW104-a )

In addition to the new PlayStation 2 price, the company also announced a new price for the PS one console of $49 SRP, a reduction of 50 percent. The combined sales of PlayStation and PS one now total more than 30 million units in North America alone, with a PlayStation or PS one console in one out of every three U.S. households.

  Following is the pricing breakdown by platform (suggested retail pricing):

  PLAYSTATION 2                                Original Price   New Price
   PlayStation 2 computer entertainment system           $299        $199
   Memory Card (8MB) (for PlayStation®2)               $ 34        $ 24
   DUALSHOCK™2 Analog Controller                      $ 34        $ 24

  PLAYSTATION                                  Original Price   New Price
   PS one™ console                                    $ 99        $ 49
   PS one Combo (console/LCD screen)                     $199        $149
   DUALSHOCK Analog Controller                           $ 29        $ 19

"The $199 price point for PlayStation 2 has always been part of Sony Computer Entertainment America's strategy to bring the world's leading computer entertainment system to the broadest audience," said Kaz Hirai, president and chief operating officer, Sony Computer Entertainment America Inc. "As we currently stand, our company has shipped more than 30 million PlayStation 2 units, and 90 million PlayStation/PS one consoles worldwide. With the popularity of the PlayStation brand breaking all industry expectations, Sony Computer Entertainment has been able to grow the computer entertainment category as a whole representing tremendous opportunities for our partners and ultimately, for the consumer."

PlayStation already enjoys a diverse spectrum of fans and offers game titles in all genres, and the company expects the hardware price reductions to further expand the appeal of its popular systems, exponentially growing the software business. In addition to the more than 250 PlayStation 2 titles available for the system today, the product offers the broadest software catalog ever created, including the capability of playing more than 1,000 PlayStation titles currently on the market, the common link between the two platforms.

Company executives also indicate that the new price point for the PlayStation 2 and PS one consoles, coupled with the sustained demand for PlayStation products overall, will drive strong years for the industry.

About Sony Computer Entertainment America Inc.

Sony Computer Entertainment America Inc. continues to redefine the entertainment lifestyle with its PlayStation® and PS one™ game console, and the PlayStation®2 computer entertainment system. The PlayStation 2 computer entertainment system is set to revolutionize the home entertainment market, offering the most compelling interactive content and the capability to be used as a network terminal in the coming broadband era.

Recognized as the undisputed industry leader, Sony Computer Entertainment America Inc. markets the PlayStation family of products and develops, publishes, markets and distributes software for the PS one game console and the PlayStation 2 computer entertainment system for the North American market. Based in Foster City, Calif. Sony Computer Entertainment America Inc. serves as headquarters for all North American operations and is a wholly owned subsidiary of Sony Computer Entertainment Inc.

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SOURCE: Sony Computer Entertainment America Inc.

Contact: Molly Smith, +1-650-655-6044, or
molly_smith@playstation.sony.com, or Monica Wik, +1-650-655-5394, or
monica_wik@playstation.sony.com, both of Sony Computer Entertainment America

Website: http://www.playstation.com/